E. Tsotsoros                           G. Stergioulis
Chairman of BoD                     Chief Executive Officer

Our goal is to create a leading energy regional group, which will be a leader in European developments concerning modern and sustainable forms of energy.

In 2016, the global energy sector has taken important steps towards creating the conditions for a transformation, which sees increased production of low-carbon emitting sources. The 2015 Paris Agreement and the UN's Sustainable Development Goals set new targets for tackling climate change by promoting economic growth that requires respect for the principles of sustainability and prioritises modern forms of energy.

While ensuring for an adequate energy supply, energy transformation will make a significant contribution to tackling climate change, innovation and employment, and focuses on:

• High energy efficiency and energy savings
• Reducing dependence on solid fuels and oi and
• Increasing renewable energy sources (RES)

Defining a new strategy

The previous year was also a very important year for HELLENIC PETROLEUM Group as it achieved the highest operating profitability in its history with Adjusted EBITDA reaching €836m and net profits reaching €329 million, also contributing to strengthening the Greek economy, which has faced such a difficult period in recent years.

Having embedded the principles of sustainable development into its strategy, the Group has set the following main goals for the years to come:

• Increasing extroversion and international competitiveness, with exports having already reached 60% of total production.
  During the 2009-2016 crisis, the Group implemented an extensive modernisation investment program amounting to approximately €3.5 billion, which in addition to improving the refining units’ efficiency, further improved its environmental performance and increased employment.
   
• Gradually diversifying its energy portfolio, according to the EU roadmap relating to energy transformation, aiming at further developing renewable energy sources and reducing the Group's carbon footprint, while designing and implementing alternative energy infrastructures in Greece (electric vehicle charging points, supply points for compressed natural gas vehicles in cooperation with DEPA etc.)
   
• Improving energy efficiency and energy saving at the refineries with planned investments of around €400 million
   
• Digital transformation, aimed at improving efficiency and enhancing transparency
   
• Education and Innovation: Investing in staff training, in the new generation in collaboration with both Greek and overseas universities (scholarships) while also exploring technological developments through participating in research projects in partnership with various universities and research bodies
   

Prioritizing Health and Safety, and the Environment

The Group continued to invest in Health and Safety in 2016 so as to comply with the strictest criteria at both national and European level. A Holistic Safety program was launched at the Group’s three refineries with the aim of improving all relevant processes. Another important achievement in the previous year saw the EKO marketing company achieve 2,000,000 man hours worked without any accidents necessitating days of absence.

With regards to the environment, despite the refineries’ increased operating levels, the indicators for the most important gas emissions fell by 23% compared to 2015.
 

Creating Value for Society

By implementing an ambitious corporate social responsibility program, the Group is investing in the new generation and educational community, it supports vulnerable social groups, contributes to the dissemination of culture, and is investing in infrastructure projects in order to improve the day-to-day lives of the neighbouring municipalities.

The priority is to create jobs, local employment and create opportunities for young people as well as strengthen the social product by investing in neighbouring societies, supporting local suppliers and meeting the energy needs of vulnerable social groups.
 

The 2016 Corporate Responsibility Report

The Report includes all relevant information about the Group's performance based on social, working-life, and health-safety and environment criteria. For nine years now, the Group has been a member of the UN Global Compact and has been working towards protecting the environment, respect for human rights, equal opportunities in employment, the fight against corruption, and the adoption of a modern code of corporate governance.

For the years to come, we will continue to work on these principles and seek synergies to deliver on our vision of sustainable development, maximizing the benefits to society and ensuring for a better future for future generations.